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Home Sustainability

An Opportunity and an Imperative: Decarbonizing India’s Development: AM/NS India Chairman Aditya Mittal

AM/NS India’s Climate Action Report is more than a declaration of intent; it is an invitation for collective action.

India CSR by India CSR
February 6, 2024
in Sustainability
Reading Time: 6 mins read
An Opportunity and an Imperative: Decarbonizing India’s Development: AM/NS India Chairman Aditya Mittal
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NEW DELHI (India CSR): In an era marked by rapid industrial growth and escalating climate concerns, India stands at a crucial juncture. ArcelorMittal Nippon Steel India (AM/NS India), a joint venture between ArcelorMittal and Nippon Steel, two of the world’s leading steel manufacturing organisations has released its inaugural Climate Action Report, marking a pivotal step in its journey towards sustainable development.

The report, introduced by Chairman Aditya Mittal, underscores the company’s commitment to decarbonizing its operations amidst a rapidly evolving global landscape that demands net-zero emissions.

The report has outlined a strategic plan to decarbonise its operations. This ambitious initiative is set against the backdrop of India’s journey towards becoming a $5 trillion economy, with steel playing a pivotal role in the nation’s developmental narrative.

A leading integrated flat carbon steel producer in India, the company has a crude steel capacity of 9 million tonnes per annum with state-of-the-art downstream facilities. It produces a fully diversified range of flat steel products, including value-added steel, and has a pellet capacity of 20 million tonnes. 

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For more than 100 years, since the first
Indian steel plant was set up, steel has
helped build some of India’s most remarkable
and enduring projects. Now once again, an
opportunity presents for our company, and
our industry – the opportunity for our most
defining act yet: producing net-zero steel
to support a net-zero economy.

Setting the Stage for Sustainable Growth

In his Chairman’s Letter, Aditya Mittal highlights the significant strides made by AM/NS India since its inception at Hazira. With plans to boost annual production to 15 million tonnes, the focus is not just on expansion but on sustainable growth. “As our company and country grow, we also push ourselves to confront a parallel challenge: decoupling development from emissions,” says Aditya Mittal.

Aditya Mittal

Steel: The Backbone of India’s Development

The steel industry, integral to India’s infrastructure boom, faces the challenge of doubling its capacity by 2030 while mitigating its environmental impact. “Steelmaking will be integral – the backbone of the houses and highways, bridges and buildings that will define a more competitive manufacturing economy,” Mittal emphasizes.

Innovating Towards a Greener Future

AM/NS India’s Climate Action Report lays out a roadmap to reduce emission intensity by 20% by 2030. This includes scaling up renewable energy usage, maximizing scrap steel use, and investing in green hydrogen and carbon capture, utilization, and storage (CCUS) technologies. “We are working hard to make green hydrogen viable for steel and studying Indian geology to improve the feasibility of CCUS,” Aditya Mittal states, underscoring the company’s commitment to innovation.

Aditya Mittal

The Economic Imperative of Sustainable Practices

The journey to net-zero steel is fraught with economic challenges, particularly in India where low-carbon alternatives are costlier. Despite these challenges, AM/NS India remains steadfast in its commitment. Mittal remarks, “The pathway to net zero has to be economically viable and the industry must remain competitive.”

A Collaborative Effort for a Net-Zero Future

The transition to net-zero steelmaking demands multi-stakeholder collaboration, including supportive policies, incentives, and investment. “Transformational steps by the industry, with support and leadership from the government, can close the gap to net-zero steel,” affirms Aditya Mittal.

AM/NS India’s Role in India’s Growth and Decarbonisation Challenge

Growth Trajectory and Environmental Responsibility

Since commencing operations at Hazira over four years ago, AM/NS India has played a significant role in supporting India’s growth trajectory, focusing on self-reliance and resilience. As the company aims to increase production to 15 million tonnes annually, it simultaneously faces the dual challenge of fostering economic development and reducing emissions.

Aditya Mittal

The Link between Steel Production and Environmental Impact

Steel production is integral to India’s development, forming the backbone of infrastructure projects. However, this necessitates a substantial increase in steel capacity, potentially tripling by mid-century. Such growth, if unchecked, could lead to a 200% rise in sector emissions by 2050, contradicting environmental goals.

The Path to Net-Zero: Strategy and Actions

Immediate Goals and Long-Term Vision

AM/NS India sets an ambitious target to reduce emission intensity by 20% by 2030, from 2021 levels. This goal will be pursued through operational efficiency, increased use of renewable energy, and maximizing scrap steel usage.

Pioneering Technologies and Strategic Partnerships

The report highlights the company’s focus on green hydrogen and carbon capture, utilization, and storage (CCUS) technologies. Efforts include strategic partnerships, geological studies for CCUS feasibility, and leveraging ArcelorMittal’s global innovations like ‘smart carbon’.

Overcoming Economic Challenges and Collaborative Efforts

Economic Viability and Industry Competitiveness

Recognizing the higher costs of lower carbon production methods in India, AM/NS India emphasizes the need for economically viable pathways. The company plans to maintain its gas-based Electric Arc Furnace capacity, despite cost disparities, and prepare for future technologies like hydrogen-based steelmaking.

Government and Industry Collaboration

The report calls for industry and government collaboration to bridge the gap to net-zero steel production. It underscores the importance of policies and financial support in fostering technological breakthroughs and ensuring industry competitiveness.

A Collective Vision for a Net-Zero Future

By sharing this report, the company aims to inspire customers, government, and peers to accelerate the transition to a net-zero economy. Embracing the challenges and opportunities, AM/NS India is committed to leading the charge in producing net-zero steel, contributing to a sustainable future for India.

Also Read:

Sustainability: ArcelorMittal Nippon Steel India targets a Reduction in Emissions Intensity by 20% by 2030

Also Read:

Climate Action Reports: Definition, History, Purpose, Pillars and Important Explained

(CopyRight@India CSR)


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Tags: Aditya MittalAM/NS India
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India CSR is the largest media on CSR and sustainability offering diverse content across multisectoral issues on business responsibility. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting.

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